Stock futures climbed Wednesday evening following a market sell-off incited by the first Federal Reserve interest rate hike in three years.
Futures tied to the Dow Jones Industrial Average advanced 72 points, or 0.1%. S&P 500 futures were up 0.2%, and Nasdaq-100 futures added 0.4%.
In Asia, Japan's Nikkei 225 added 0.87%, while the Topix rose 0.71%.The Kospi advanced 1%, while the small-cap Kosdaq gained 0.57%. Australia's benchmark S&P/ASX 200 inched 0.16% higher.
Generac rose more than 30% in extended trading after Amazon received warrants to buy up to $340 million of its shares. The warrants are part of a deal in which Generac will supply Amazon with backup power generators for its data centers.
In regular trading, the blue-chip Dow lost more than 630 points, or 1.2%, dragged down by financial services names. The broad market S&P 500 edged lower by 0.5%, while the tech-heavy Nasdaq Composite ended the session marginally lower.
In a widely anticipated move, the Fed raised the overnight federal funds rate by a quarter percentage point on Wednesday afternoon, bringing the target range to 3.75%-4%. Policymakers also signaled another hike could come this year, with Fed Chairman Kevin Warsh saying that inflation remains too high.
Indeed, August's latest consumer price index reading came in 3.4%, and oil prices have surpassed $100 per barrel.
"The bigger question now is whether this rate increase is one and done or the beginning of another tightening cycle," said Steve Rick, chief economist at TruStage.
"Higher oil prices stemming from continued conflict in the Middle East could keep inflation elevated, but monetary policy works with long and variable lags, and additional increases would put more pressure on consumers and businesses already facing elevated borrowing costs," he added. "The Fed should give this increase time to work before determining how much additional restraint is necessary."
Investors are now turning to Thursday's economic data for further clues on the health of the economy.
Weekly jobless claims data will be out at 8:30 a.m. ET. Traders are also monitoring August's housing starts, which could offer a read on how elevated borrowing costs are affecting residential construction.
1 Hour AgoAsia-Pacific markets open higher, South Korea's Kospi advances 1%
Asia-Pacific markets traded higher early Thursday.
Japan's Nikkei 225 added 0.87%, while the Topix rose 0.71%.
The Kospi advanced 1% at the open, while the small-cap Kosdaq gained 0.57%.
Australia's benchmark S&P/ASX 200 inched 0.16% higher.
—Justina Lee
2 Hours AgoAsia-Pacific markets set to open mixed following first U.S. Fed rate hike in three years
Asia-Pacific markets were set to open mixed Thursday, as traders assess the implications of the U.S. Federal Reserve hiking interest rates for the first time in three years.
Japan's Nikkei 225 was poised to rise, with the Chicago futures contract at 64,430 and its Osaka counterpart last trading at 64,250, compared with the index's previous close of 63,923.
Hong Kong Hang Seng index futures were at 24,401, compared with the index's last close of 24,713.78.
Futures for Australia's S&P/ASX 200 last traded at 8,627, while the index closed at 8,696.50.
Oil prices were lower after the Trump administration tried to reassure the market that Saudi Arabia's damaged East-West pipeline will restart operations in days.
Tensions in the Middle East continue to simmer, with Iran on Wednesday vowing to fight on "until the last drop of blood," according to the state media Islamic Republic News Agency.
—Justina Lee
3 Hours AgoTrump calls for the Federal Reserve to cut interest rates to 1% 'or less'
President Donald Trump called on the Federal Reserve to cut interest rates to 1% "or less" after central bank policymakers raised rates for the first time since 2023.
"Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR," Trump wrote in a Truth Social post hours after the Fed lifted rates by a quarter percentage point.
"LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!" he wrote.
The Fed raised its target rate range to 3.75% to 4% on Wednesday, and Fed Chairman Kevin Warsh noted that inflation continues to be elevated.
--Darla Mercado
3 Hours AgoMicrosoft's total return prospects just became even more attractive, per Morgan Stanley
Software giant Microsoft just boosted its total return prospects with a sweet dividend hike, according to Morgan Stanley.
On Tuesday, the company announced a quarterly dividend of 98 cents per share, reflecting an increase of 8%. The dividend is payable on Dec. 10 to shareholders of record on Nov. 19.
"The increase is modestly below the ~10% average increase over the prior five years, but remains consistent with Microsoft's track record of steadily growing its dividend alongside earnings," said Morgan Stanley analyst Adam Wood.
He said that combined with earnings per share growth in the high-teens, the dividend boost "supports a durable high-teens total return profile at MSFT, framing an attractive risk/reward."
The firm rates Microsoft overweight, and its price target of $600 suggests 22% upside from Wednesday's close.
—Darla Mercado
3 Hours AgoAmazon is eligible to purchase shares of AI infrastructure play Generac
Amazon obtained warrants that give it the right to purchase up to $340 million shares of Generac.
The power company said in a securities filing that it has issued warrants to Amazon to acquire up to 1.69 million shares valued at $200.93 each. As part of the deal, Generac will provide Amazon with backup power generators for its data centers, with initial shares expected to total $2.4 billion in 2027 and 2028, according to the filing.
Generac shares surged 35% in extended trading.
Generac shares in the past day--Darla Mercado
3 Hours AgoStocks open near flat
U.S. stock futures opened near the flatline on Wednesday evening in New York.
Futures tied to the Dow Industrials were off 5 points, or 0.01%. S&P 500 futures were up 0.02%, and Nasdaq 100 futures gained roughly 0.1%.
--Darla Mercado
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